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Economic growth and water use

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  • Matthew Cole

Abstract

In recent years the issue of global water scarcity has attracted increasing attention within academia, non-governmental organizations and the media. The aim of this short note is to ascertain whether there is a systematic relationship between water use and income, and particularly whether an inverted U-shaped relationship exists, as has been found for other resources and pollutants. Using a new data set of water use, evidence of such a relationship is provided, suggesting that water use may benefit from composition and technique effects. While this finding appears optimistic, regional forecasts are made that suggest that levels of water use in developing regions will continue to increase for many years to come. The implications of these findings are discussed.

Suggested Citation

  • Matthew Cole, 2004. "Economic growth and water use," Applied Economics Letters, Taylor & Francis Journals, vol. 11(1), pages 1-4.
  • Handle: RePEc:taf:apeclt:v:11:y:2004:i:1:p:1-4
    DOI: 10.1080/1350485042000187435
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    References listed on IDEAS

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    1. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 401-416, November.
    2. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
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    Cited by:

    1. Xiaoxia Lin & Jinghua Sha & Jingjing Yan, 2015. "Exploring the impacts of water resources on economic development in Beijing-Tianjin-Hebei Region," ERSA conference papers ersa15p723, European Regional Science Association.
    2. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2013. "Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach," Economic Modelling, Elsevier, vol. 31(C), pages 518-527.
    3. Yoo, Seung-Hoon & Lee, Joo-Suk, 2010. "Electricity consumption and economic growth: A cross-country analysis," Energy Policy, Elsevier, vol. 38(1), pages 622-625, January.
    4. John Hoehn & Kwami Adanu, 2008. "Do growth, investment, and trade encourage water use or water conservation?," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 127-146, December.
    5. Seung-Hoon Yoo, 2007. "Urban Water Consumption and Regional Economic Growth: The Case of Taejeon, Korea," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(8), pages 1353-1361, August.

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